Fires in wood waste storages cause financial losses, are difficult to extinguish, and emit large amounts of fire effluents. The mechanisms related to fires in wood chip piles are not well elucidated. To find suitable preventive measures for handling such fires in wood waste, a better understanding of the physical properties of wood waste is needed. The present study investigates how granularity affects mechanisms of smoldering fire and transition to flaming in wood chip piles. Eighteen experiments with samples inside a top-ventilated, vertical cylinder were conducted. Heating from underneath the cylinder induced auto-ignition and smoldering fire, and temperatures and mass loss of the sample were measured. The results showed that granularity significantly affects the smoldering fire dynamics. Material containing larger wood chips (length 4-100 mm) demonstrated more irregular temperature development, higher temperatures, faster combustion, and higher mass losses than material of smaller wood chips (length <4 mm). The larger wood chips also underwent transition to flaming fires. Flaming fires were not observed for small wood chips, which instead demonstrated prolonged and steady smoldering propagation. The differences are assumed to be partly due to the different bulk densities of the samples of large and small wood chips affecting the ventilation conditions. Increased knowledge about these combustion processes and transition to flaming is vital to develop risk-reducing measures when storing wood chips made from wood waste in piles.